The Nigeria state oil company will, in June, announce names of the selected companies that will finance the rehabilitation of Nigeria’s three refineries in Port Harcourt, Warri and Kaduna, in an effort committed to actualizing the December 2019 target set by the federal government to end the importation of petroleum products into the country.
It was also learnt that the board of the national oil firm recently received the names of investors who would fund the rehabilitation as near zero funding is to come from the Federal Government.
Senior officials at the corporation refuted claims that the proposed rehabilitation would not be different from the previous turnaround maintenance on the refineries as they argued that the last TAM was done over a decade ago.
Ndu Ughamadu, the Group General Manager, Group Public Affairs Division, NNPC, said that several investors had shown interest in the rehabilitation of the country’s refineries, adding that some had been selected and sent to the board of the oil firm.
He said, “Investors have shown interest and the appropriate investors have been picked but their names have not been released. You know it is a contractor-financing package and so all appropriate measures must be adopted because we are rehabilitating the refineries.
“Companies or consortia that will do the financing have shown interest and they have been picked and presented to the board but the details have not been released.”
When probed further to state the number of investors that were presented to the corporation’s board or when they would be made public, Ughamadu said, “it is the board that will decide on that. The board is speaking preferably next month.”
On whether the planned project on the refineries could be likened to the series of turnaround maintenance in the past, Ughamadu stressed that the proposed rehabilitation was beyond TAM.
He said, “It goes beyond that (TAM). This is complete rehabilitation and to rehabilitate is more than turnaround maintenance. TAM is like servicing or maintaining your car, but rehabilitation is a more detailed work that will increase the strength of the refineries and enable them to improve on their yields.”
On the amount needed for the rehabilitation of the refineries, Ughamadu said, “It has not been revealed.”
He also refuted claims that turnaround maintenance of refineries was often carried out during or before an election year, adding that the last one was done about 10 years ago.
Maikanti Baru, the Group Managing Director, NNPC, recently speaking as a special guest of honour at the Offshore Technology Conference 2018 Nigeria Oil Industry Award Dinner in Houston, Texas, United States, commented on the financing measures for the refineries.
He stated that the corporation’s plan was to have a self-sustaining model.
“This model is expected to be a self-sustaining financial model with near zero reliance on the Federal Government funds. For smooth running and implementation, we are also changing the operating and commercial framework of the refineries to make them work efficiently and be commercially viable,” he said.